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Impact of Information Technology to Business

Technological change may involve improvements to non-human resources or new knowledge about how to combine resources. Technology is one of the means by which productivity may be increased within an economy, an industry, or an organization. The introduction of new technology into industries tends to lower production costs in those industries, over the long-term. Technology, thus, is indispensable with respect to growth (Miller, 1996).

Information technology encompasses computer and communications technology and their applications. Technological and theoretical innovations ranging from ranging from DNA computing to optical circuitry hold the potential to further revolutionize computing. The combination of more powerful (yet physically smaller and less expensive) computers and innovations in software programming is permitting and will continue to permit ever larger sets of data to be manipulated in ever smaller organizational units (Norsworthy & Malmquist, 2000).

Technological innovations based in electronics hold the potential to change dramatically the ways in which organizations function. Organizational managers, thus, must be prepared to anticipate such changes and devise strategies to effectively manage such changes, as opposed to waiting around to react to changes when they occur (Norsworthy & Malmquist, 2000).

An important development in the evolution of information technology was the creation of the Internet. The Internet, however, is just the latest development in the long continuum of information technology development (Tarr, 2000).

Gromov (1997) traced the development of the Internet through a broader consideration of the development of information technology than the high-tech developments of the past two decades. Gromov (1997) dealt not only with the actual development of the Internet and the World Wide Web (WWW), but also discussed the developments in areas beyond the field of communications that provided th...